5N Plus Inc., a top performer on the TSX, has seen its shares surge more than 125% year-to-date, and National Bank of Canada Capital Markets believes the momentum will continue as global space infrastructure spending expands.
Analyst Raises Price Target
National Bank analyst Baltej Sidhu raised his price target for 5N Plus shares to $50 from $41 in a note on June 14. The stock closed at $40.09 on Monday. Sidhu cited several near-term catalysts that could drive further upside.
Space Spending on the Rise
Global space infrastructure spending is expected to hit approximately US$626.4 billion in 2025 and could exceed US$1 trillion by 2034, Sidhu said. Satellite proliferation is central to this growth, with over 43,000 satellites projected for launch by 2043.
As satellite infrastructure becomes more complex, demand is shifting toward high-performance subsystems where reliability, radiation tolerance, and lifecycle performance matter more than upfront cost. 5N Plus is well-positioned through its space solar cell producer, Azur Space Solar Power GmbH, which manufactures high-efficiency germanium-based solar cells for satellites operating in higher orbits.
Azur Space Solar Power: Key Growth Driver
Azur, described as 5N Plus's largest growth vector, is sold out through fiscal years 2026 and 2027, with significant portions of 2028 and 2029 supply already committed. Sidhu forecasts that 5N will upgrade its fiscal year 2026 guidance.
Vertical Integration Advantage
5N Plus benefits from vertical integration: its Utah-based germanium company supplies the critical mineral used in Azur's solar cells, providing a built-in cost and supply chain advantage.
SpaceX Factor
Sidhu also noted a potential boost from SpaceX, which reportedly filed plans in early 2026 to deploy up to one million satellites for space-based data centre infrastructure between 500 and 5,000 kilometers above Earth.
Based on five analyst estimates, 5N Plus has a 12-month consensus price target of $48.90, according to Bloomberg.
